Source: Avaxhome.ws

There would be one less porn magazine on newsstands as FriendFinder Networks, publisher of Penthouse magazine, filed for Chapter 11 bankruptcy on Tuesday.

The holding company, which has estimated liabilities of $500 million to $1 billion but assets of less than $10 billion, is likely another victim of the information technology as seekers of images of naked women have more choices in the Internet where they could view not only nude females but even actual sex scenes of couples or even groupies.

Priced at $100, Penthouse - one of the favourite reading fare of teenage young adult males - the very daring magazine which allowed frontal nudity and openly showed female genitalia unlike its rival Playboy that was more "conservative" - it found tougher competition in porn Web sites as well as pirated movies that sell at just a fraction of the magazine's cover price.

Reports said that FriendFinder has not turn a net profits since 2008 since total revenue for the past 12 months that ended June 30, 2013 was only $283.7 million, according to the company's filing.

The filing said there is still continued member interest and high volume traffic, but FriendFinder blamed debtors that failed to make payments to holders of current first lien notes and cash pay second lien notes that constituted a default under their respective indentures.

The Chapter 11 proceeding is part of FriendFinder's agreement with some holders of its senior debt to restructure the company's balance sheet.

FriendFinder also houses several Internet sites like adultfriendfinder.com. In 2010, the company even offered to purchase Playboy Enterprises for $210 million, but the deal did not push through.

Penthouse was founded by Bob Guccione and came out with its first issue in 1965.